Costa Rica’s core competence is its ability push sustainable business practice in many areas. The country is been very successful in implementing sustainable business practices in difficult industries like tourism and coffee production . Currently many of the coffee cooperatives are already using sustainable production practices like using coffee husks instead of firewood and country is pushing farmers to use shade grown coffee thereby reducing the use of fertilizers and keeping the environment safe. So the main competitive advantage costa rica has its ability to produce coffee with less water,energy consumption, and greenhouse gas emission. The country is also pushing more sustainable coffee farming and processing methodologies. Costa rica should also create a framework for the sustainable business practice and agency to rate the sustainable business practice. Then it should push major coffee buyers like kraft, nestle etc and international organizations like UN to promote “sustainable coffee” trading. Currently very less amount of sustainable coffee is traded globally also companies like kraft and nestle have less interest in buying sustainable coffee’s.
Costa rica can also try to find unique taste attributes in its coffee and try to market it as differentiated product. However, the main challenges with this approach is the money and effort needed for this is very high and the risk of failure is also high. But still the country should put efforts in finding key attributes in taste to differentiate its coffee and try to find if it can make unique coffee and non coffee products like chocolates etc. Above all the stability of the government is one of the major advantage in costa rica. Costa Rica is one of the country with almost zero political risk.
This is country without a military and provided a stable government for last seventy plus years. Many coffee producing countries are facing serious political challenges.So this is a major advantage in doing business in Costa Rica.